ASSIGNMENT No.

2
Total Quality Management
Course Code (890)

ROLL NO: AH-504088

NAME: M. Kamran Farhat

Semester: Spring 2011

Level: MBA

TOPIC

Quality by design is one of the essential terms used in

TQM. Explain the rationale for implementations of
quality by design by studying industrial sector.
 ACKNOWLEDGEMENT

All gratitude and thanks to almighty “ALLAH” the gracious, the most merciful and
beneficent who gave me courage to undertake and complete this task. I am very much
obliged to my ever caring and loving parents whose prayers have enabled to reach this
stage.

I am grateful to almighty ALLAH who made me able to complete the work presented in
this report. It is due to HIS unending mercy that this work moved towards success.

I am highly indebted to my course instructor for providing me an opportunity to learn

about the “which is vital ingredient” of MBA program. I am very grateful to my teacher
(Sir. Naseer Ahmed) for providing me guideline for the completion of this report.

I feel great pride and pleasure on the accomplishment of this report.

 ABSTRACT

This report is the practical part of the most vital practice of our MBA-Human Resource

program. The sole objective of my activity is to familiarize with the practical manipulation

of business organization. This report has been written to know how big organizations

like Servis Footwear manage their teams to achieve their common goals.

In the first phase of the report there is the general introduction about the company and

then different terms have been explained, then the mission, values, different services

and different strategies of the organization have been explained. In the next part, SWOT

analysis of the firm have been done by the help of which it is identified that what are the

strong areas of the company and where it lacks so that it can improve, and then in the

end most important my experience while visiting in the Servis Footwear.

 TABLE OF CONTENTS

o INTRODUCTION OF TOPIC
o QUALITY DESIGN & POLICY
o QUALITY MANAGEMENT
o THE CHANGING ENVIORMENT
o QUALITY CHALLENEGE

o POTENIAL ADVANTAGES OF USING QUALITY BY DESIGN

o PRACTICAL REVIEW OF COMPANY

o VISION
o MISSION
o IDUSTRY ANALYSIS
o QUALTIY BY DESIGN IN PAKISTAN FOOTWEAR

o SWOT ANALYSIS
o CONCLUSION
Introduction:-
Total Quality Management (TQM) is a comprehensive and structured approach to organizational
management that seeks to improve the quality of products and services through ongoing
refinements in response to continuous feedback.

Quality by Design is a concept first outlined by well-known quality expert Joseph M. Juran in
various publications, most notably Juran on Quality by Design.

Juran believed that quality could be planned, and that most quality crises and problems relate to
the way in which quality was planned in the first place. While Quality by Design principles have
been used to advance product and process quality in every industry, and particularly
the automotive industry, they have most recently been adopted by the U.S. Food and Drug
Administration (FDA) as a vehicle for the transformation of how drugs are discovered,
developed, and commercially manufactured.

Quality by Design

Billions of Free scale products power and connect lives across the globe. From product concept
to customer ship, our quality system helps ensure that every solution is safe, cost-effective and
reliable.

Quality Policy:

At Free scale we are committed to be the finest semiconductor company in the world by
providing the highest levels of product quality, delivery and service, as viewed through the eyes
of our customers. Free scale is passionate in our relentless pursuit of total customer loyalty by
instilling a global high quality culture that results in manufacturing excellence and flawless new
products.
Need for QUALITY BY DESIGN

In today's business world, corporations must be able to react to the changing market needs
rapidly, effectively, and responsively. They must be able to reduce their time to market and
adapt to the changing environments. Decisions must be made quickly and they must be done
right the first time out. Corporations can no longer waits time repeating tasks, thereby
prolonging the time it takes to bring new products to market. Therefore, concurrent
engineering has emerged as way of bringing rapid solutions to product design and
development process.

Quality by design is indisputably the wave of the future for new product development for all
companies regardless of their size, sophistication, or product portfolio. In order to be
competitive, corporations must alter their product and process development cycle to be able to
complete diverse tasks concurrently. This new process will benefit the company, although it
will require a large amount of refinement in its implementation. This is because, concurrent
engineering is a process that must be reviewed and adjusted for continuous improvements of
engineering and business operations.

Quality Management

Quality management is focused on customer expectations to drive satisfaction in every aspect of

our relationship with them. Strategic quality planning is performed by the corporate quality staff,
which defines quality strategy, quality goals, improvement approaches and initiatives. These are
reviewed by the corporate leadership team for validation and resource commitment. Executive
quality review is chaired by the CEO with the participation of his direct reporting staff, and led
by the VP of Quality. Meetings are held every month to review key quality results, the status of
quality initiatives and new improvement opportunities.

Quality Organization

Free scale is organized in a matrix structure with solutions groups/divisions, supply chain
organization; corporate sales organized by regions and corporate support functions. The quality
organization is centralized under corporate business operations and led by the VP of Free scale
Quality. Quality organization structure is a matrix that includes the following:

 Global group/division quality focused on product quality and quality interface with
customers. This includes customer quality, field quality, new product introduction (NPI)
quality and software quality.
 Die manufacturing and technology quality focused on quality of manufactured products
and quality of new technologies and packages.
 Quality labs comprised of product analysis labs, reliability labs and calibration labs.
 Supplier Quality.
 Quality Systems that include quality standards and bodies.

The Changing Environment

Quality by Design Current Regulatory Situation

 Adequate resources for quality:  Little guidance on adequate resources

number, qualifications, etc. or qualifications

 Self-assessments play key role  Self-assessments not trusted

 Continuous analysis & improvement  Annual product reviews instead of

continuous analysis
 Change management based on good
science  Formidable barriers to change,
including intimidating enforcement
 Focus on what’s important (risk emphasis
management)
 Seldom admit that anything is not
important; test everything
The evolution in mechanical-design software during the past decade has permanently changed
the manufacturing industry. Three-dimensional computer-aided design, manufacturing and
engineering (CAD/CAM/CAE) software programs are close to fulfilling their promise to deliver
fully integrated design and manufacturing. CAD design software saves time and money in
product development by reducing or eliminating the need for physical mock-ups, allowing for
early detection of interferences between components and enabling quick design iterations that
result in product optimization.

To further this integration, design engineering is taking new quality assurance lessons from
manufacturing. On factory floors all over the world, attention to quality in product-
manufacturing operations now determines market success.

The quality challenge

As a rule, design engineering has lagged behind the shop floor in awareness of product and
process quality. Unfortunately, very real costs are associated with inattention to design quality. If
errors or omissions in design data are not addressed early, more costly changes are required later
in the product development process (see Figure 1).

Figure 1: Cost of Changes

For example, a major aerospace company recently discovered that it was losing millions of
dollars as a result of inaccurate digital design data. Product quality on the manufacturing floor
was high, and customers were receiving excellent finished products. However, the company
didn't apply the same rigorous attention to assessing and controlling the quality of the digital
modeling process in design engineering. Errors and inconsistencies in the 3-D CAD models
regularly caused hours of rework for engineers and significant problems for others in the
organization. Engineering managers were stunned to learn of the product development costs they
could have avoided by applying quality assessment and control to design.
On each digital model generated in the design of the company's products, engineers were
spending at least one additional hour to examine and prepare the electronic data for
manufacturing. Multiplied by the 10,000 digital models generated per month, the time allotted
for data cleanup was substantial. A typical design package containing 80 parts required 80 hours
in cleanup, equivalent to two weeks of work for one person. This didn't include the additional
time required when models had to be returned to designers for corrections, nor did it count the
cost of errors that slipped through and caused headaches later on in tooling or production.

The wasted time in engineering was only part of the problem. The more troublesome costs, and
the most pain for manufacturing, came from resulting delays in aircraft assembly schedules.

Manufacturers in other industries, such as automotive, electronics and consumer products, have
had similar insights into the importance of design data quality. Some of the traditional inattention
to quality issues in the creation of digital models may be attributed to a perception that the design
process, unlike the manufacturing process, is not a series of repeatable actions that can be
controlled. But the regular, repeatable errors that design data contain prove this perception false.

Repeatable processes

The manufacturing engineers at the aforementioned aerospace company saw a $150,000 design
data error return repeatedly in separate digital part models. The problem was a mismatch
between the part dimensions represented in the model itself and the measurement specified by
designers in text on the dimension line. Because of the design error, the first articles produced
were consistently wrong. Each individual digital model was always fixed. However, because the
design process that produced the error wasn't fixed, the error continued to occur--and continually
had to be fixed--at a cost of $150,000 each time.

If this isn't a set of repeatable actions, what is? The example shows that the company had a
method in place to identify instances of manufacturing error, but it had not yet developed a
method to identify and correct error in the design process.

Improving design quality

Quality assurance programs such as six sigma have proven that companies gain both a
competitive advantage and an economic advantage when they pay attention to the quality of the
manufactured product. There are three elements of design quality: the adequacy of a design
relative to the functional requirements, the accuracy of the geometrical data and the suitability of
the design data to meet downstream product data requirements. As we have seen, an organization
is achieving design quality when the engineering product it creates can be effectively used by
downstream organizations.
 Many practices developed for quality in manufacturing can be adapted for use in design quality
assurance. Similar steps apply: (1) Detect errors or deviations; (2) assess the errors detected in
order to decide what to fix; and (3) correct the 3-D model so it conforms to requirements.

Rationale for implementation

Projects budgets for all industries are becoming more crucial to any product’s marketability .in
1970s, accounting method and budgets were able to pass unaccounted costs to the consumer
through price increases. In the past, consumers had only a few brands to choose from, so the
price was dictated by the cost of production plus a reasonable profit imported products are
helped once the demand for quality products at reasonable prices and allowed consumers to set
the market price. Often there was little to no markup on goods, forcing inefficient suppliers to
close their doors or produce specialized products that had higher contribution margins

Potential Advantage of Using QBD

 Faster time to market which results in increased market share.

 Lower manufacturing and production costs.
 Improved quality of resulting end products.
 Increased positioning in a highly competitive world market.
 Increased accuracy in predicting and meeting project plans, schedules, timelines, and
budgets.
 Increased efficiency and performance.
 Higher reliability in the product development process.
 Reduced defect rates.
 Increased effectiveness in transferring technology.
 Increased customer satisfaction.
 Ability to execute high level and complex projects while minimizing the difficulties.
 Shorter design and development process with accelerated project execution.
 Higher return on investments.
 Reduction or elimination of the number of design changes and re-engineering efforts at
later phases in the development process.
 Reduced labor and resource requirements.
 Ability to recognize necessary design changes early in the development process.
 Increased innovation by having all players participate in the concept development phase.
 Ability to design right the first time out / first time capabilities.
 Overlapping capabilities and the ability to work in parallel.
  Increased cohesiveness within the firm.
 Improved communication between individuals and departments within the firm.
 Lower implementation risks.
 Faster reaction time in responding to the rapidly changing market.
 Lower product and process design and development costs.
 Improved inventory control, scheduling and customer relations.

SEQUENTIAL NEW PRODUCT DEVELOPMENT

In the past, commercial success was practically guaranteed for companies that could design,
develop, and manufacture high-quality products that satisfied real needs at competitive prices.
However, beginning in the early 1990s this traditional formula radically changed as time-to-
market became a vital component of commercial success. Studies have demonstrated that being a
few months late to market is much worse than having a 50 percent cost overrun when these
overruns are related to financial performance over the lifecycle of a new product or service. In
other words, time has become a key driver of competitive success, from design and development
to the actual launch of a new product or service.

QBD OR CONCURRENT NEW PRODUCT DEVELOPMENT

Because time has become a competitive weapon, time pressures have become central to the
project-based new product development organization. These pressures have led to the explicit
understanding that time compression is a driver of project (and subsequent business)
performance. As a consequence, methods, techniques, and organizational approaches have been
designed and developed that allow for time compression needs to be handled in a proper manner.
All time-centered approaches have one principle in common: they attempt to maximize the
number of major design or development tasks that are performed concurrently, thus the concept
of concurrent engineering.
In a concurrent engineering environment, even if certain tasks cannot be completely executed at
the same time, designers and developers are encouraged to achieve maximum overlap between
otherwise sequential activities. In other words, concurrent engineering aims at achieving
throughput time reductions by planning and executing design and development activities in
parallel, or by striving for maximum overlap between activities that cannot be completely
executed in parallel (for example, when one of the tasks or activities requires information to be
partially generated during a previous task or activity).
IMPLEMENTING QBD
In a concurrent engineering environment, teams of experts from different disciplines are formally
encouraged to work together to ensure that design progresses smoothly and that all participants
share the same, current information. The project and problem-solving methods and the
technologies utilized make up the essential elements through which parallelism in new product
design and development can be achieved. Following is a discussion of how each of these
elements contributes to concurrent engineering implementation.
PROJECT METHODS.
Project methods based on team-work, milestone management, and target-oriented work
definition and follow-up are paramount. These methods also must be supported by appropriate
senior management commitment and incentive systems. Each team is granted a large degree of
autonomy to solve design problems where and when they occur, without much hierarchical
intervention. However management must ensure that the transfer of information between
different activities or tasks is smooth and transparent. Also, the means of experimentation must
allow the experts involved to rule out differences in interpretation on the functional and technical
design parameters. In other words, for concurrent engineering to be successful, information and
interpretation asymmetries between the experts involved must be avoided whenever possible.
PROBLEM-SOLVING METHODS.
During design and development projects, methods are utilized that foster and support smooth
interdisciplinary problem definition and problem solving. Methodologies such as brainstorming
open the boundaries of the team to allow for wider ranges of alternative design definitions and
solutions to be considered. The use of methodologies like Quality Function Deployment (QFD)
further aids experts from different disciplinary backgrounds to jointly define a product's
functional and technical requirements. Activity flow chart methods such as IDEF3 allow for
detailed planning and monitoring of the different parallel and overlapping activities involved in
project execution. Failure Mode and Effects Analysis (FMEA) allows for a systematic
investigation of the occurrence and impact of possible flaws in the new product design.
TECHNOLOGIES
In concurrent engineering, design technologies are utilized that foster efficient cross-disciplinary
analysis, experimentation, and representation of new product designs. Some examples of these
technologies include: three-dimensional (3-D) computer-aided design (CAD) systems, rapid
prototyping techniques, rapid tooling and rapid testing techniques, as well as techniques that
enable the representation of product designs in a virtual context. These design technologies are
important because of the key information they convey: their 3-D character allows the expert to
interpret design features in a more effective and efficient way.
All of these technologies contribute to the reduction of interpretation asymmetries between the
experts involved, as well as to fast-cycle design and development, because they allow for high-
speed iterations of analysis and experimentation on both concepts and models of the product.
Thus, they modify traditional project management approaches by allowing for more systematic
and flexible experimentation and iteration to be included throughout the project's design and
development process. In fact, the time and cost incurred by the development and construction of
prototypes generally are reduced by factors of 2 to 5 when using digital (e.g., 3-D CAD) and
physical (e.g., rapid prototyping) technologies. These tools have become an important enabling
factor in the concurrent engineering environment. Without their implementation and further
upgrading, concurrent engineering might never be able to realize its full potential in terms of
design cost and lead-time optimization.

Quality Information Systems

A suite of quality information systems have been developed over time to allow effective and
efficient operation of free scale quality processes. These tools are now becoming global and
support has been centralized under the information technology team. These tools are used by
quality associates and all users of quality processes within the corporation. A multi-year program
was launched in late 2006 to develop integration of these systems and enhance data reporting and
data mining capabilities. Systems integration will improve data integrity by accessing data from
a unique corporate repository.

The main focus of the quality information systems improvements initiative is on easy access
from a quality portal, user friendliness, simplified and more flexible workflows, easy access to
data through specific dashboards, certified reports, easily accessible ad hoc reporting, data
mining and fast response times. These improvements are led by quality client champions driving
global user teams and supported by IT business analysts. A process is also in place to define and
implement small enhancements in support of continuous improvement.

The Development Management Team

The Development Management Team basically consists of senior managers. The MT is involved
mainly with the project planning stage and with each check point throughout the project. The MT
budgets money for each team, sets the meeting for the team leaders, approves the timeline of the
new project, and communicates with suppliers. The MT team has supervision of the project.
However, most decisions are made by each of the teams in concurrent engineering.

The New Technology Team

The New Technology Team consists of varied design and manufacturing engineers from the
company. This team works during project planning and conceptual stages. The implementation
of a new technology in the development process may cause uncertainty and risks. Thus, the team
works with the new technology outside of the development process of the project. If the new
technology is proven, the team then brings it to the development process. When a company
needs to take action because of a quick change in the market, the new technology developed by
this team will be used.

Cross-Functional Product Development Team

The Cross –Functional Product Development Team (CDT) consists of members of the company
from different functions related to the project . This team could include representatives from
marketing, manufacturing, software, electrical design, or even people from a different company
if the project is collaboration between companies. This team is most active in the planning stage,
and works until the project shifts to production. The single most important function for this team
is communication. Frequent communication can reduce risks in the future. For example, at least
a few problems will occur when a project shifts to the production stage. However, when the
manufacturing engineer is part of the CDT, it could help to reduce those problems.
The Cross-Functional Process Development Team

The Cross-Functional Process Development Team (CPDT) has responsibility for development
and set up of the manufacturing line. This team works like the CDT.

The Product Team

The Product Team (PT) is organized using members from CDT, CPDT, and PT. This team is
responsible for product support during the production stage. The problems that occur in either
the product field or the production lines are dealt with by PT. However, since the product support
is addressed in CDT, this team has a broader scope for problem resolution. This is an advantage
of Concurrent Engineering (Skalak, Susan).

QUALITY AND QUALITY FUNCTION DEPLOYMENT

Product design shapes the product's quality. It defines the way that good and service functions.
Quality has at least two components. First, the product must be designed to function with a high
probability of success, or reliability; that is, it will perform a specific function without failure
under given conditions. When product reliability increases, the firm can extend the product's
warrantee without increasing customer claims for repairs or returns. Warrantees for complex and
expensive items such as appliances are important selling points for customers. Second, quality
improves when operating or performance characteristics improve even though reliability does
not. The goals of product design should be greater performance, greater reliability, and lower
total production and operating costs. Quality and costs should not be viewed as a trade-off
because improvements in product and process technologies can enhance quality and lower costs.

THE INCREASING IMPORTANCE OF PRODUCT DESIGN

Product design is more important than ever because customers are demanding greater product
variety and are switching more quickly to products with state-of-the-art technology. The impacts
of greater product variety and shorter product life cycles have a multiplicative effect on the
number of new products and derivative products that need to be designed. For example, just a
few years ago, a firm may have produced four different products and each product may have had
a product life cycle of ten years. In this case, the firm must design four new products every ten
years. Today, in order to be competitive, this firm may produce eight different products with a
life cycle of only five years; this firm must introduce eight new products in five years. That
represents sixteen new products in ten years or one product every seven and one-half months. In
this fast-paced environment, product design ceases to be an ad hoc, intermittent activity and
becomes a regular and routine action. For an organization, delays, problems, and confusion in
product design shift from being an annoyance to being life threatening.
PRODUCT DESIGN: A KEY TO ORGANIZATIONAL SUCCESS
Product design is an essential activity for firms competing in a global environment. Product
design drives organizational success because it directly and significantly impacts nearly all of the
critical determinants for success. Customers demand greater product variety and are quick to
shift to new, innovative, full-featured products. In addition, customers make purchase decisions
based on a growing list of factors that are affected by product design. Previously, customers
made purchase decisions based primarily on product price and/or quality. While these factors are
still important, customers are adding other dimensions such as customizability, order-to-delivery
time, product safety, and ease and cost of maintenance. Environmental concerns are expanding to
include impacts during production, during the product's operating life, and at the end of its life
(recycle-ability). In addition, customers demand greater protection from defective products,
which leads to lower product liability losses. Safer and longer lasting products lead to enhanced
warrantee provision, which, in turn, impact customer satisfaction and warrantee repair costs.

DESIGN FOR MANUFACTURING AND ASSEMBLY

Improving manufacturability is an important goal for product design. A systems approach to
product design that was developed by two researchers from England, Geoffrey Boothroyd and
Peter Dewhurst, is called design for manufacturability and assembly (DFMA). It can be a
powerful tool to improve product quality and lower manufacturing cost. The approach focuses on
manufacturing issues during product design. DFMA is implemented through computer software
that identifies designs concepts that would be easy to build by focusing on the economic
implications of design decisions. These decisions are critical even though design is a small part
of the overall cost of a product because design decisions fix 70 to 90 percent of the
manufacturing costs. In application, DFMA has had some startling successes. With the DFMA
software, Texas Instruments reduced assembly time for an infrared sighting mechanism from 129
minutes to 20 minutes. IBM sliced assembly time for its printers from thirty minutes to three
minutes.

Quality by Design in the footwear Industry:

Quality by design in Pakistan Footwear Industry

The Pakistan Shoes Industry has entered a new era. Attention is now being paid to real time
process monitoring, real time process control, continuous improvement of processes, and quick
product technology transfer. Terms like Quality by Design, Design Space, Control Strategy,
Process Analytical technology, Process Signature reflects the current state. Multivariate
Statistical Analysis has played an integral part in several industries, enabling process
understanding, process monitoring, utilization of real time analyzers and real time product
release. It is therefore appropriate to see it as an integral part of the pharmaceutical industry
effort to address issues like Design Space, Control Strategy, real time process signature
monitoring, process understanding and correct technology transfer. In this work it is
demonstrated that multivariate, data based statistical methods play a critical role in providing
solutions to these issues. From determining the acceptability of raw material entering the plant to
ensuring quality of the product that leaves the plant, the multivariate analysis philosophy should
govern all the operations that take that raw material and convert it to a final product in a cost
efficient way, while meeting safety and environmental constraints, from development to
manufacturing to site transfer.